[Anonymous]

During the current year, the following manufacturing activity took place for a company’s products:

Beginning work in process: 10,000 units, 70% complete

Units started into production during the year: 150,000 units

Units completed during the year: 140,000 units

Ending work in process: 20,000 units, 25% complete

What was the number of equivalent units produced using the first-in, first-out method?

A. 138,000.

B. 140,000.

C. 145,000.

D. 150,000.

Answer: A, 138,000

The FIFO method lets the costs and EUs associated with beginning WIP flow on to Finished Goods and bases the unit cost of production for the current period on the EUs started (and completed) during the period.

Nominal Units % Complete Equivalent Units

Beginning WIP 10,000 30% 3,000

Units started and finished 130,000 100% 130,000

Ending WIP 20,000 25% 5,000

Units to account for or Equivalent units 160,000 138,000

---

Why is the units started and finished 130,000 when it says in the question that the units completed is 140,000?

[M.O.D.]

I make a T acct for these:

Left side

10000 BI

150000 (started in production)

---

20000 (ending inv) 25% complete

Right side

10000 (the BI that was completed and transferred on ) 70% complete, 30% needed

130000 (units completed and transferred on) 100 % complete

Now make a table

10000 x30% (for FIFO you have to use the percent to be completed only, weighted average would be 100%)

130000 x100%

20000 x 25%

---

total: 138000

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[M.O.D.]

I make a T acct for these:

Left side

10000 BI

150000 (started in production)

---

20000 (ending inv) 25% complete

Right side

10000 (the BI that was completed and transferred on ) 70% complete, 30% needed

130000 (units completed and transferred on) 100 % complete

Now make a table

10000 x30% (for FIFO you have to use the percent to be completed only, weighted average would be 100%)

130000 x100%

20000 x 25%

---

total: 138000

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[mla1169]

To answer the question you actually asked- the reason the units started and completed during the year is only 130,000 when the units completed during the year was 140,000 is because you already had 10,000 units started before the year began.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[mla1169]

To answer the question you actually asked- the reason the units started and completed during the year is only 130,000 when the units completed during the year was 140,000 is because you already had 10,000 units started before the year began.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[Anonymous]

Oh, HELL YES you can pass!!! First order of business… repeat that phrase until you believe it!!

If you keep engaging that enemy, you WILL conquer it. Be consistent and determined and you have to have CONFIDENCE in yourself and your ability to KILL this %&#@!!!

Good luck Determined! You can do this!!!

[Anonymous]

Oh, HELL YES you can pass!!! First order of business… repeat that phrase until you believe it!!

If you keep engaging that enemy, you WILL conquer it. Be consistent and determined and you have to have CONFIDENCE in yourself and your ability to KILL this %&#@!!!

Good luck Determined! You can do this!!!

[Study Monk]

Cost accounting is only 1/5 of BEC;s material. If you factor in the writing part of the exam maybe 1/7. So you could probably still get 85% if you mastered the other sections and scored perfectly on the writing.

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Study Monk]

Cost accounting is only 1/5 of BEC;s material. If you factor in the writing part of the exam maybe 1/7. So you could probably still get 85% if you mastered the other sections and scored perfectly on the writing.

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[tough_kitty]

As far as BEC, I actually didn't care much for the IT topic but everything else I considered pretty important…. just saying 😉

FAR: 81 (May 2013)
BEC: 81 (July 2013)
REG: 83 (August 2013)
AUD: 82 (November 2013)
California CPA since 1/30/14

[tough_kitty]

As far as BEC, I actually didn't care much for the IT topic but everything else I considered pretty important…. just saying 😉

FAR: 81 (May 2013)
BEC: 81 (July 2013)
REG: 83 (August 2013)
AUD: 82 (November 2013)
California CPA since 1/30/14

[stoleway]

@Determined_To_Succeed,

Cost accounting very easy if you know your formulas and understand the concepts. Knowing the formulae is even more important in this situation.

Why is the units started and finished 130,000 when it says in the question that the units completed is 140,000?

Remember you are NOT being asked to solve for unit completed (which is 140,000), you are required to solve for the EUP using FIFO.

Use the EUP FIFO formulae below.

EUP FIFO= Units completed + Ending WIP x %completed – Beginning WIP x %completed

=140000 + 5000 – 7000

= 138000

Don't give up yet, you can do this!!

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[stoleway]

@Determined_To_Succeed,

Cost accounting very easy if you know your formulas and understand the concepts. Knowing the formulae is even more important in this situation.

Why is the units started and finished 130,000 when it says in the question that the units completed is 140,000?

Remember you are NOT being asked to solve for unit completed (which is 140,000), you are required to solve for the EUP using FIFO.

Use the EUP FIFO formulae below.

EUP FIFO= Units completed + Ending WIP x %completed – Beginning WIP x %completed

=140000 + 5000 – 7000

= 138000

Don't give up yet, you can do this!!

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Study Monk]

He should learn the cost accounting. I am just saying the title of his post may not be accurate 😉

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Study Monk]

He should learn the cost accounting. I am just saying the title of his post may not be accurate 😉

I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

"Do 5000 multiple choice questions for each section"

[Author]

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